I think this time our County government will have to shut down programs and lay people off. There are no longer any reserves to “float” a loan to the State to pay their reimbursement bills for program services. It no longer matters what the law mandates, the cupboards are bare and there simply are no more funds to continue without prompt payment. Facts is facts.

“Aren’t IOU’s deficit spending?”
Only if you expect to honor the IOU at some point in the future.There’s been a lot of default/bankruptcy talk lately in California.IOU holders could be royally screwed.

6
posted on 01/23/2011 2:26:14 PM PST
by Farmer Dean
(stop worrying about what they want to do to you,start thinking about what you want to do to them)

I would suggest that the bankruptcy law be written to force the State to sell off its lands. The libs need to receive some sort of punishment for causing this mess, and if they see their prize State parks sold off for development, they won’t have as much enthusiasm for deficit spending in the future.

Companies that do business with the State of California will have to take IOUs so that the politicians can continue to buy votes with cash. Sending out IOUs to all the millions of voters who are on the public tit might cause them to vote for someone other than the incumbent. That would be unthinkable.

12
posted on 01/23/2011 2:41:14 PM PST
by Steely Tom
(Obama goes on long after the thrill of Obama is gone)

California’s budget is quite complicated. UCLA and Berkeley, two universities that I WISH would close down, are extremely well insulated against any budget cuts. Places like CSU Chico, Northridge and San Diego State are in serious trouble.

California could sell off its real estate assets to balance their budget. That way they'd get new property tax payers and get the money for coastlines, forests, and desert lands. OTOH, they could take the National Parks away from the federal government and sell those properties too. They’d get new taxpayers and land owners that wouldn't appreciate Mexican marijuana growers on their property.

I know that the federal and state governments just sent us the first of several bills for overpayments starting in 2006-07 for administering their mental health program. All totaled, we are anticipating about an $8 million bill through 2010. We are currently laying off staff and reducing services by 70% regardless of mandated services, but we still don’t have the money and, with reduced staff, have no way to earn it. Shall we shut the whole County government down and dump it all back in their laps? - bacause that is where we’re heading.

Why would anyone buy their land? They have so many regulations and rules that if you buy the property you can’t do jack with it. You also have such high taxes and no jobs that who would want to live there?

29
posted on 01/23/2011 5:42:27 PM PST
by 1scrappymom
(Thanks Texas Rangers for a great run!)

All businesses doing business with the State of California and insist “cash up front” or NO SALE. No materials, no services, no nothing.

The bungholes that populate the state government and its bureaucracies buy lots of stuff, so tell them that effective immediately the are on a cash only basis. If the won’t (or can’t) pay, issue them an IOU for what they would have gotten if they’d paid for it.

Cut off all credit purchases by the state from vendors and they will suddenly find things are more difficult to do — like using the copier because there’s no ink or paper for it.

Don’t accept any government credit cards for anything; cash only. California is a spoiled child with daddy’s checkbook and credit cards. Time for daddy to cut junior off.

30
posted on 01/23/2011 6:54:03 PM PST
by MasterGunner01
(To err is human; to forgive is not our policy. -- SEAL Team SIX)

Ding, ding, ding, we have a winner! Unfortunately the Federal Government owns 45.3% of all the land in California. So I don’t see the state as being able to bail itself out by land sales, but perhaps the Feds could. I just looked at a graphic that shows that nearly half of all the land in the states west of Texas is “owned” ( really stolen) by the Fedgov. Nevada is the worst example at 84.5%

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